Home Acts & Rules Wealth-tax Act Wealth Tax Act, 1957 Chapters List Chapter VA SETTLEMENT OF CASES This
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Section 22C - Application for settlement of cases - Wealth Tax Act, 1957Extract Application for settlement of cases. 22C. 1 [(1) 2 An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his wealth which has not been disclosed before the 3 [Assessing Officer], the manner in which such wealth has been derived, the additional amount of wealth-tax payable on such wealth and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided : 4 [Provided that no such application shall be made unless such wealth-tax and the interest thereon, which would have been paid under the provisions of this Act had the wealth declared in the application been declared in the return of wealth before the Assessing Officer on the date of application, has been paid on or before the date of making the application and the proof of such payment is attached with the application. ] (1A) For the purposes of sub-section (1) of this section 5 [ *** ] the additional amount of wealth-tax payable in respect of the wealth disclosed in an application made under sub-section (1) of this section shall be the amount calculated in accordance with the provisions of sub-sections (1B) to (1D). 6 [ (1B) Where the wealth disclosed in the application relates to only one previous year, (i) if the applicant has not furnished a return in respect of the net wealth of that year, then, wealth-tax shall be calcu lated on the wealth disclosed in the application as if such wealth were the net wealth; (ii) if the applicant has furnished a return in respect of the net wealth of that year, wealth-tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth. ] 7 [(1C) The additional amount of wealth-tax payable in respect of the wealth disclosed in the application relating to the previous year referred to in sub-section (1B) shall be, (a) in a case referred to in clause (i) of that sub-section, the amount of wealth-tax calculated under that clause ; (b) in a case referred to in clause (ii) of that sub-section, the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth returned for that year ; (c) 8 [ *** ] (1D) Where the wealth disclosed in the application relates to more than one assessment year, the additional amount of wealth-tax payable in respect of the wealth disclosed for each of the years shall first be calculated in accordance with the provisions of sub-sections (1B) and (1C) and the aggregate of the amount so arrived at in respect of each of the years for which the application has been made under sub-section (1) shall be the additional amount of wealth-tax payable in respect of the wealth disclosed in the application. (1E) Where any books of account or other documents belonging to an assessee are seized under section 37A, the assessee shall not be entitled to make an application under sub-section (1) before the expiry of one hundred and twenty days from the date of the seizure. (2) Every application made under sub-section (1) shall be accompanied by such fees as may be prescribed. (3) An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant. 9 [ (4) An assessee shall, on the date on which he makes an application under sub-section (1) to the Settlement Commission, also intimate to the Assessing Officer in the prescribed manner of having made the application to the Settlement Commission. ] ------------------------------- Notes:- 1. Substituted vide following sub-section (1) by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 : "(1) An assessee may, at any stage of a case relating to him, make an application in such form and in such manner and containing such particulars as may be prescribed to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided." 2. See rules 4A , 4AA of the Wealth Tax Rules 1957 and Form DA. 3. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Before it was read as:- "Wealth-tax Officer" 4. Substituted vide Finance Act, 2007, w.e.f. 1-6-2007. Prior to its substitution, the proviso, as inserted by the Finance Act, 1987, w.e.f. 1-6-1987, read as under : " Provided that no such application shall be made unless the assessee has furnished the return of wealth which he is or was required to furnish under any of the provisions of this Act." 5. Omitted vide Finance Act, 2007, w.e.f. 1-6-2007. Before it was read as:- "and sub-sections (2A) to (2D) of section 22D" 6. Substituted vide Finance Act, 2007, w.e.f. 1-6-2007. Before substitution, sub-section (1B), as substituted by the Finance Act, 1987, w.e.f. 1-6-1987, read as under : "(1B) Where the wealth disclosed in the application relates to only one previous year, ( i ) if the applicant has not furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in respect of the net wealth of that year), then, except in a case covered by clause ( iii ), wealth-tax shall be calculated on the wealth disclosed in the application as if such wealth were the net wealth ; ( ii ) if the applicant has furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in pursuance of such return), wealth-tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth ; ( iii ) if the proceeding pending before the wealth-tax authority is in the nature of a proceeding for reassessment of the applicant under section 17 or by way of appeal or revision in connection with such reassessment, and the applicant has not furnished a return in respect of the net wealth of that year in the course of such proceeding for reassessment, wealth-tax shall be calculated on the aggregate of the net wealth as assessed in the earlier proceeding for assessment under section 16 or section 17 and the wealth disclosed in the application as if such aggregate were the net wealth." 7. Substituted vide following sub-section (1C) by the Finance Act, 1987, w.e.f. 1-6-1987 : "(1C) The wealth-tax as calculated under sub-section (1B) shall, ( a ) in a case referred to in clause ( b ) of sub-section (1B), be reduced by the wealth-tax, if any, paid by the applicant under section 15B ; and ( b ) in a case referred to in clause ( c ) of sub-section (1B), be reduced by the aggregate of the wealth-tax referred to in clause ( a ) and the wealth-tax, if any, paid by the applicant in pursuance of the assessment made in respect of the net wealth for that year, and the amount referred to in clause ( a ) of sub-section (1B) or, as the case may be, the resultant amount arrived at under clause ( a ) or clause ( b ), as the case may be, shall be the additional amount of wealth-tax payable in respect of the wealth disclosed in the application relating to that year." 8. Omitted vide Finance Act, 2007, w.e.f. 1-6-2007. Before omission, clause ( c ) read as under : "( c ) in a case referred to in clause ( iii ) of that sub-section, the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth assessed in the earlier proceeding for assessment under section 16 or section 17." 9. Inserted vide Finance Act, 2007, w.e.f. 1-6-2007.
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